Derivatives (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At March 31, 2013, the following cash flow hedges were outstanding:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Apr’13 – Dec’13	Crude oil – swap	5,500 Bbl/day	$99.71	WTI – NYMEX
Apr’13 – Dec’13	Natural gas – swap	60,000 MMBtu/day	$3.56	IF – NYMEX (HH)
Apr’13 – Dec’13	Natural gas – collar	20,000 MMBtu/day	$3.25-3.72	IF – NYMEX (HH)

Non-designated hedges outstanding

At March 31, 2013, the following non-designated hedges were outstanding:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Apr’13 – Dec’13	Crude oil – swap	3,000 Bbl/day	$94.59	WTI – NYMEX
Jan’14 – Dec’14	Crude oil – swap	2,000 Bbl/day	$91.40	WTI – NYMEX
Jan’14 – Dec’14	Crude oil – collar	2,000 Bbl/day	$90.00-95.00	WTI – NYMEX
Apr’13 – Dec’13	Natural gas – swap	20,000 MMBtu/day	$3.94	IF – NYMEX (HH)
Jan’14 – Dec’14	Natural gas – swap	30,000 MMBtu/day	$4.19	IF – NYMEX (HH)

After March 31, 2013, we entered into following non-designated hedges:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jan’14 – Dec’14	Natural gas – swap	20,000 MMBtu/day	$4.33	IF – NYMEX (HH)

Fair Value Of Derivative Instruments And Locations In Balance Sheets

The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:



		Derivative Assets
		Fair Value
	Balance Sheet Location	March 31, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	3,217	$	13,674
Long-term	Non-current derivative asset	—		—
Total derivatives designated as hedging instruments		3,217		13,674



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	—	$	2,878
Long-term	Non-current derivative asset	—		—
Total derivatives not designated as hedging instruments		—		2,878
Total derivative assets		$	3,217	$	16,552



		Derivative Liabilities
		Fair Value
	Balance Sheet Location	March 31, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	$	10,668	$	1,005
Long-term	Non-current derivative liabilities	—		—
Total derivatives designated as hedging instruments		10,668		1,005



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	$	3,160	$	943
Long-term	Non-current derivative liabilities	1,081		562
Total derivatives not designated as hedging instruments		4,241		1,505
Total derivative liabilities		$	14,909	$	2,510

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

These gains (losses) at March 31 are as follows:



	2013			2012
	(In thousands)
Loss on derivatives not designated as hedges and hedge ineffectiveness, net:
Realized gains on derivatives not designated as hedges	$	1,040		$	—
Unrealized losses on derivatives not designated as hedges	(5,615		)	—
Unrealized losses on ineffectiveness of cash flow hedges	(1,349		)	(1,993		)
	$	(5,924	)	$	(1,993	)

Amount Of Gain Or (Loss) Recognized In Accumulated OCI On Derivative

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Income (cash flow hedges) for the three months ended March 31:



Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) ⁽¹⁾
	2013			2012
	(In thousands)
Commodity derivatives	$	(3,838	)	$	13,503

(1) Net of taxes.

Gain Or Loss Of Reclassified Accumulated Other Comprehensive Income And Recognized In Income

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Income (cash flow hedges) for the three months ended March 31:



Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income ⁽¹⁾				Amount of Gain or (Loss) Recognized in Income ⁽²⁾
		2013		2012		2013			2012
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	3,831	$	8,176	$	—		$	—
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	—		—		(1,349		)	(1,993		)
Total		$	3,831	$	8,176	$	(1,349	)	$	(1,993	)


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

Effect Of Derivative Instruments Recognized In Statement Of Income, Not Designated As Hedging Instruments

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Income (derivatives not designated as hedging instruments) for the three months ended March 31:



Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		2013			2012
		(In thousands)
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	$	(4,575	)	$	—
Total		$	(4,575	)	$	—

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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